Bank boss agrees to defer £3m bonus

Published on Thursday 2 July 2009 10:09

ROYAL Bank of Scotland boss Stephen Hester has agreed to defer part of his controversial £9.6 million pay packet after it provoked outrage last week.

The chief executive, who is paid a 1.2 million basic wage, will now wait five years before cashing in shares that could be worth 3.4 million.

The move is an attempt to defuse concern that that Mr Hester was being given incentives to push the company's share price up in a way that was unsustainable.

Peter Montagnon, of the Association of British Insurers, said: "This is a significant and welcome development. Large rewards are fine if real value is created, but it must have a sustainable and long-term focus."